[Asia Economy Reporter Eunmo Koo] Both the KOSPI and KOSDAQ indices fell more than 1% in early trading, marking a second consecutive day of adjustment following last Friday.
On the 18th, the KOSPI opened at 3,079.90, down 6.00 points (0.19%) from the previous trading day. The KOSPI, which started lower, is falling more than 1% in early trading as individual and foreign investors are both net sellers. As of 9:15 a.m., it recorded 3,039.99, down 45.91 points (1.49%) from the previous day.
This week, the Korean stock market is expected to fluctuate depending on individual companies' earnings announcements and major countries' economic indicator results. Sangyoung Seo, a researcher at Kiwoom Securities, explained, "Considering the weak U.S. real economy indicators, the possibility of profit-taking selling is high. Additionally, with Germany and France expanding economic lockdowns and China announcing a full lockdown of Hebei Province, these factors are spreading the desire for such selling." Furthermore, the delay in COVID-19 vaccination due to inventory sluggishness is also evaluated as a negative factor.
Meanwhile, attention is also needed on the remarks of U.S. President Joe Biden at his inauguration and Treasury Secretary nominee Janet Yellen's confirmation hearing. This is because it could increase the willingness for additional U.S. government stimulus measures, highlighting the possibility of a counter-buying influx. Researcher Seo added, "Of course, the U.S. stimulus package must pass Congress, but uncertainty still remains, which will act as a factor increasing volatility."
Looking at the current trading trends by participant, individual and foreign investors are leading the index adjustment with net sales of 139.7 billion KRW and 77.0 billion KRW, respectively. On the other hand, institutional investors are net buyers with 213.1 billion KRW.
By sector, most sectors including transportation and warehousing, non-metallic minerals, securities, and electric and gas utilities are declining.
Most of the top market capitalization stocks are also falling. Samsung SDI, SK Innovation, Samsung Electronics, Kia Motors, Hyundai Motor, and LG Chem are all down. In contrast, Celltrion is rising.
The KOSDAQ index is also showing a decline of around 1%. The KOSDAQ index opened at 963.18, down 1.26 points (0.13%) from the previous day, and is declining due to net selling by institutional investors. As of 9:15 a.m., it recorded 954.11, down 10.33 points (1.07%) from the previous day.
Looking at the current supply and demand situation, institutional and foreign investors are net sellers of 10.5 billion KRW and 7.2 billion KRW, respectively. Meanwhile, individual investors are net buyers of 19.8 billion KRW.
By sector, most sectors including transportation, telecommunications equipment, and chemicals are declining. In contrast, distribution is rising.
Among the top market capitalization stocks, Celltrion Healthcare and Celltrion Pharm are rising. On the other hand, Genexine, Hugel, EcoPro BM, Alteogen, and Studio Dragon are falling.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
